BP, the oil and gas company, said that renewables will become the largest source of global power by 2040
The pace at which renewable energy penetrates the global energy system is faster than any fuel in history, the company stated in its 2019 edition Energy Outlook.
The report examined some scenarios for global changing energy demand and stated that demand will grow massively in all forecasts and will require more generation.
Global energy demand will increase by around a third by 2040, driven by improvements in living standards, particularly in India, China and across Asia, it added.
Energy consumed by industry and buildings accounts for around 75 per cent of this increase in overall energy demand, while growth in energy demand from transport slows sharply relative to the past as gains in vehicle efficiency accelerate.
The power sector uses about 75 per cent of the increase in primary energy. Around 85 per cent of energy supply growth is generated by renewable energy and natural gas.
The report showed that oil demand grew in the first half of the outlook period before it gradually plateaued, while global coal consumption remains largely flat. In all the scenarios considered in the outlook, significant levels of continuous investment in new oil will be required to meet oil demand by 2040.
Spencer Dale, the group chief economist, commented, “The world of energy is changing. Renewables and natural gas together account for the great majority of the growth in primary energy. In our evolving transition scenario, 85 per cent of new energy is lower carbon.”
Bob Dudley, BP chief executive, said, “The outlook again brings into sharp focus just how fast the world’s energy systems are changing, and how the dual challenge of more energy with fewer emissions is framing the future. Meeting this challenge will undoubtedly require many forms of energy to play a role.”
“Predicting how this energy transition will evolve is a vast, complex challenge. In BP, we know the outcome that’s needed, but we don’t know the exact path the transition will take. Our strategy offers us the flexibility and agility we need to meet this uncertainty head-on,” he explained.
